1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
svetoff [14.1K]
3 years ago
8

Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218

,000, $224,000, and $238,000 over the next three years, respectively. After that time, they feel the business will be worthless. If the desired rate of return is 14.5 percent, what is the maximum Southern Tours should pay today to acquire Holiday Vacations?
Business
1 answer:
Pepsi [2]3 years ago
7 0

Answer:

$519,799.59

Explanation:  

Discount rate = R = 14.50%

Year    Cash flows     Discount factor     PV of cash flows

1            218,000.00          0.873362            190,393.0131  

2           224,000.00          0.762762           170,858.6793

3           238,000.00          0.666168            <u>158,547.9011</u>

          Total of PV = NPV =                           <u> $519,799.59</u>

<u />

Note:

Df = 1/(1+R)^Year

PV of cash flows = Cash flows x Df

You might be interested in
Prior to closing, a final walkthrough of the property should be performed to ensure that everything has remained as stated in th
vitfil [10]

Prior to closing, a final walk through of the property should be performed to ensure that everything has remained as stated in the sales contract. The walk through is generally completed by the: buyer

<h3><u>Explanation:</u></h3>

In real estate field final walk through refers to the inspection that is carried out finally before signing the documents. The local purchase and sales contract determines the time period at which the final walk through must be taken place. It helps the buyer to ensure the conditions to the property before signing the legal documents.

A final walk through helps a buyer to inspect whether all the things that are stated in the sales contract are fulfilled by the seller. Hence, it must be completed only by the buyer. If the seller has mentioned some modifications or repairs to be done then it should also be completed as per the stated requirements of the buyer.

3 0
4 years ago
elected data of Islander Company follow: As of December 31, Balance Sheet Data 2017 2016 Accounts receivable $ 500,000 $ 470,000
Nataliya [291]

Answer:

(a) 5.41 times

(b) 3.48 times

Explanation:

(a) Accounts receivable turnover for 2017:

=\frac{Net\ Credit\ Sales}{Average\ Accounts\ Receivables}

=\frac{2,500,000}{462,500}

      = 5.41 times

Working:

Average\ Accounts\ Receivables=\frac{Sum\ of\ net\ accounts\ receivable\ in\ 2017\ and\ 2016}{2}

Average\ Accounts\ Receivables=\frac{475,000+450,000}{2}

                                                             = 462,500

(b) Inventory turnover for 2017:

=\frac{cost\ of\ goods\ sold}{Average\ Inventory}

=\frac{2,000,000}{575,000}

      = 3.48 times

Working:

Average\ Inventory=\frac{Sum\ of\ inventories\ in\ 2017\ and\ 2016}{2}

Average\ Accounts\ Receivables=\frac{600,000+550,000}{2}

                                                             = 575,000

8 0
3 years ago
What is negative communication from citizens​
vesna_86 [32]

bad words,  bad language, mean insults, talking nasty.

8 0
3 years ago
If Kelly were to consider enhancing productivity by giving greater authority to her subordinates and increasing formalization, s
EastWind [94]

Kelly would be considering structural changes.

Major technological changes today include the introduction, automation, and computerization of new devices, tools, or methods. Automation is a technological shift that replaces humans with machines that function automatically without human intervention.

Resistance to change – is caused by selfishness, misunderstanding, distrust, and general intolerance to change. People resist change for their own benefit and are afraid that change may sacrifice something or rob something that is important to them.

Productivity gains have enabled the US corporate sector to produce nine times as many goods and services since 1947 with relatively little increase in working hours. Increased productivity allows the economy to produce and consume more goods and services for the same amount of work.

Learning more about enhancing productivity at

brainly.com/question/1151291

#SPJ4

6 0
2 years ago
A consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the market basket
Ann [662]

Answer:

A. rose 60% from the cost of the market basket in the base year.

Explanation:

The base year of 1982-1984 represents a 100 value for the index, and anything above it, is an over 100 value.

A 60% rise in 12 years (1984 to 1996) represents an average inflation rate of 5% every year, a bit high, but still within a moderate range.

The formula to find the adjusted consumer price index is:

Adjusted CPI = (CPIn / CPIb) - 1

Where:

CPIn = consumer price index in selected year (in this case 1996)

CPIb = consumer price index in base year (in this case 1982-1984)

7 0
3 years ago
Other questions:
  • Torque Engine Company is considering opening a plant in China. It will cost $3,500,000 to set up the plant and $750,000 to train
    8·1 answer
  • People with anorexia nervosa often come from families that lack educational opportunities. are high achieving and competitive. a
    13·1 answer
  • When the government imposes price floors or price​ ceilings, A. some people​ win, some people​ lose, and there is a loss of econ
    14·1 answer
  • Mark was recording accounting transactions when he came across a non-standard transaction type. however, based on his knowledge
    6·1 answer
  • In the short​ run, a​ firm's total costs of producing the hundredth unit of output equal ​$9 comma 000. If it produces one more​
    9·1 answer
  • Describe the purpose of the SEC
    8·1 answer
  • Your break-even point is 3,000 units. You make $5 on each unit; that is, your price minus variable cost is $5. What are your fix
    9·1 answer
  • A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth.The
    8·1 answer
  • According to the article, Roger Dow, U.S. Travel president, said that the Visit U.S. Coalition sees its initiative as complement
    9·1 answer
  • A 1996 bill reforming the federal government's antipoverty programs limited many welfare recipients to only two years of benefit
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!